Canadian Dollar and Business Outlook: Loonie stays above 81 cents U.S.

WINNIPEG – The Canadian dollar stayed fairly steady on Monday morning amidst economic optimism from the Bank of Canada and news that the country’s manufacturing activity increased for the 10th straight month in April. The IHS Markit Canada Manufacturing Purchasing Managers’ index (PMI) was at 57.2 in April, its third-highest rating since the index was created in 2010. A rating over 50 indicates growth.

As of 8:42 a.m. CDT, the loonie was at US$0.8136 or US$1=C$1.2291 compared to US$0.8140 or US$1=C$1.2285 when markets closed on Friday.

Benchmark oil prices made gains as upcoming economic data from the United States this week would provide evidence of a rebound. Brent crude moved up by US$0.24 per barrel to US$67.00. West Texas Intermediate (WTI) increased by US$0.42 to US$64.00/barrel. Western Canadian Select (WCS) jumped by US$0.36 at US$51.88/barrel.

The TSX/S&P Composite Index was lifted on Monday morning by 122.76 points to 19,231.09.

Gold surged by US$22.30 to US$1,790.00 per ounce due to a weakened U.S. dollar and lower-than-expected U.S. Treasury bond yields.

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